L'Oreal Paris - Five Forces Analysis

Home Five Forces Index L'Oreal Paris - Five Forces Analysis

Last Updated by wbot | Update This Page Now

Add New 5 Forces

Intensity of Existing Rivalry Government limits competition (L'Oreal Paris) Government policies and regulations can dictate the level of competition within the industry. When... Large industry size (L'Oreal Paris) Large industries allow multiple firms and produces to prosper without having to steal market share... Relatively few competitors (L'Oreal Paris) Few competitors mean fewer firms are competing for the same customers and resources, which is a... Bargaining Power of Suppliers 2 power of supplies High competition among suppliers (L'Oreal Paris) High levels of competition among suppliers acts to reduce prices to producers. This is a positive... Diverse distribution channel (L'Oreal Paris) The more diverse distribution channels become the less bargaining power a single distributor will... Volume is critical to suppliers (L'Oreal Paris) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can... Threat of Substitutes Low brand loyalty (L'Oreal Paris) Please edit this page to add a description… Substitute is lower quality (L'Oreal Paris) A lower quality product means a customer is less likely to switch from L'Oreal Paris to another... Substitute product is inferior (L'Oreal Paris) An inferior product means a customer is less likely to switch from L'Oreal Paris to another product... Substantial product differentiation (L'Oreal Paris) When products and services are very different, customers are less likely to find comparable product... Bargaining Power of Customers Customers seek lower prices (L'Oreal Paris) Please edit this page to add a description… Low buyer price sensitivity (L'Oreal Paris) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product.... Large number of customers (L'Oreal Paris) When there are large numbers of customers, no one customer tends to have bargaining leverage.... Threat of New Competitors Strong distribution network required (L'Oreal Paris) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to... High capital requirements (L'Oreal Paris) High capital requirements mean a company must spend a lot of money in order to compete in the... Strong brand names are important (L'Oreal Paris) If strong brands are critical to compete, then new competitors will have to improve their brand... Advanced technologies are required (L'Oreal Paris) Advanced technologies make it difficult for new competitors to enter the market because they have to... Industry requires economies of scale (L'Oreal Paris) Economies of scale help producers to lower their cost by producing the next unit of output at lower... Patents limit new competition (L'Oreal Paris) Patents that cover vital technologies make it difficult for new competitors, because the best... Entry barriers are high (L'Oreal Paris) When barriers are high, it is more difficult for new competitors to enter the market. High entry... What is Porter's Five Forces Analysis? WikiWealth's Five Forces analysis evaluates the five factors that determine industry competition. Add your input to l-oreal-paris's five forces template. See WikiWealth's tutorial for help. Is WikiWealth missing any analysis? Check out our entire database of free five forces reports or use our five forces generator to create your own. Remember, vote up l-oreal-paris's most important five forces statements.